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Cooperative Game Theory: Profit-Sharing and Cost Sharing Games (Possibly with a Specific Structure) and Axiomatic Analysis of Allocation Rules

Student: Sergey Korolev

Supervisor: Emre Dogan

Faculty: Faculty of Computer Science

Educational Programme: Applied Mathematics and Information Science (Bachelor)

Year of Graduation: 2018

Cooperative game theory solutions are used in allocating costs between involved agents. The problem of dividing costs (airport problem) is considered. Few methods of cost allocation are offered and compared in terms of fairness. Methods are explored. Numerical example comparing these methods is presented. Some dependencies are explored. Minimal cost spanning tree game reduced to an airport problem case. Proposition is stated and proved. Key words—Cooperative game theory, profit-sharing, cost-sharing, allocation, folk solution, minimal cost spanning tree, airport problem.

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